EAS Optimisation Webinar March 20 th 2019 Colin Peacock - - PowerPoint PPT Presentation
EAS Optimisation Webinar March 20 th 2019 Colin Peacock colinmpeacock@ecr-shrink-group.com 1 Introduction to ECR A save to invest group focused on retail loss a problem that can be >3% of retail sales and circa100
March 20th 2019 Colin Peacock – colinmpeacock@ecr-shrink-group.com
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problem that can be >3% of retail sales and circa€100 billion in lost profits for European retailers
retail store operations, loss prevention, profit protection, supply chain innovation, buying and
“Hot off the Press” ECR Report on Online Sales returned to stores – “No such thing as a free return!” Work in Progress Collaboration White Paper – Are you ready to collaborate? Inventory Record Accuracy – What is the sales lift from more accurate inventory records?
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2019 Dates Jan 23rd – ECR and Checkpoint Learning Series – Webinar – Risk Amplification Jan 24th – Video in Retail Workshop – London Feb 12th – Webinar to launch Returns Research Feb 13th - Self-Checkout Workshop – London March 13th & 14th – Working Group Meeting – Madrid March 20th – ECR and Checkpoint Learning Series – Webinar – EAS Optimisation April 2nd – Returns Workshop – London May 15th – ECR and Checkpoint Learning Series – Webinar – Measuring Impact June 19th / 20th – Working Group Meeting - Copenhagen June 26th & 27th – Waste Working Group meeting – Brussels Late Sept / Oct - Working Group Meeting – TBC November – Sell More, Waste Less Meeting – TBC 2020 Dates Jan 21/22 - Video in Retail Workshop – London Feb 12th - Self-Checkout Workshop – London Mid March – Working Group Meeting - TBC
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EAS Research Insights Retailer Response Questions
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EAS Research Insights Retailer Response Questions
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% of Transactions via Self Checkout 100% 0%
Source: Speaker Estimates – March 2019 – Developed Markets
The business response to the concern that EAS deactivation will add friction to the self-checkout shopping journey Turn off EAS gates Remove EAS devices
Store design and self- checkout corrals can lead to the EAS gates being in closer proximity to members of staff Training Opportunity Compliance Monitor
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Offender Decision Tree How EAS changes behaviour Retailer Dependencies
Will I get caught? How easy is it to do it? Is it worth it? If I get caught, what will happen?
Offender Decision Tree How EAS changes behaviour Retailer Dependencies
Will I get caught? The EAS enabled device the
activate the gates on exit and a staff member / security guard will approach and “catch me” – need to think again before stealing How easy is it to do it? Is it worth it? If I get caught, what will happen?
Offender Decision Tree How EAS changes behaviour Retailer Dependencies
Will I get caught? The EAS enabled device the
activate the gates on exit and a staff member / security guard will approach and “catch me” – need to think again before stealing
reduce “crying wolf”
EAS gates must approach those activating the EAS gates How easy is it to do it? Is it worth it? If I get caught, what will happen?
Offender Decision Tree How EAS changes behaviour Retailer Dependencies
Will I get caught? The EAS enabled device the
activate the gates on exit and a staff member / security guard will approach and “catch me” – need to think again before stealing
reduce “crying wolf”
EAS gates must approach those activating the EAS gates How easy is it to do it? EAS enabled keeper cases, spiders and hard tags mean that I need to remove them and reduce the amount I can steal – need to find another easier store Is it worth it? If I get caught, what will happen?
Offender Decision Tree How EAS changes behaviour Retailer Dependencies
Will I get caught? The EAS enabled device the
activate the gates on exit and a staff member / security guard will approach and “catch me” – need to think again before stealing
reduce “crying wolf”
EAS gates must approach those activating the EAS gates How easy is it to do it? EAS enabled keeper cases, spiders and hard tags mean that I need to remove them and reduce the amount I can steal – need to find another easier store
waste of effort if (say) 10% are not fitted with the physical EAS device, hard tags, etc Is it worth it? N/A If I get caught, what will happen? N/A
36% 72% 75% 58% 77% 2% 16% 25% 25% 29% 0% 20% 40% 60% 80% 100% Soft Tags Hard Tags Keepers Bottle Tags Spiders
Effectiveness by Thief Type
Opportunist Organised
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Source: EAS Global Users Survey – 2016: https://ecr-shrink-group.com/page/eas-users-research
Poor store tagging compliance Lack of support for source tagging Low responses to gate alarms Not a priority for the business (esp: Drug) Lack of means to track / monitor Store design issues (esp: Grocery)
# of Source Tagged Products Staff Compliance Pre-filled displays Integration with CCTV / POS RFID + EAS
Source: EAS Global Users Survey – 2016: https://ecr-shrink-group.com/page/eas-users-research
Take actions and make changes to the EAS program to amplify the risk to the Opportunist thief.
Security Claims on protected products The store wide marketing of risk – including public view monitors
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Source: Situational Crime Prevention in Retail - LPRC 2018
See it Get it Fear it
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Take actions and make changes to the EAS program to amplify the risk to the Opportunist thief.
Security Claims on protected products The store wide marketing of risk – including public view monitors
Move more of the tagging application upstream and away from the store. Think differently:
Engage the buyers
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25 Source: RILA Engaging the Buyer Report, Professor Nicole de Horatius
Invest in Buyer Training Quantify Benefits of Engagement Success equals the buyer always asking this question:
“What can I do to protect my items, especially new items, from shrink / theft?”
26 Source: RILA Engaging the Buyer Report, Professor Nicole de Horatius
Shrink Inventory Record Accuracy On-Shelf Availability Store Compliance
Distribution Display Day One
27 Source: RILA Engaging the Buyer Report, Professor Nicole de Horatius
Buyers need Data Insights Choices Benefit Analysis Make it Easy
28 Source: RILA Engaging the Buyer Report, Professor Nicole de Horatius
Assortment Packaging Layout Theft Protection Life Cycle
29 Source: RILA Engaging the Buyer Report, Professor Nicole de Horatius
30 Source: RILA Engaging the Buyer Report, Professor Nicole de Horatius
FROM TO
Take actions and make changes to the EAS program to amplify the risk to the Opportunist thief.
Security Claims on protected products The store wide marketing of risk – including public view monitors
Move more of the tagging application upstream and away from the store. Think differently:
Engage the buyers Adopt “take tagging away from the stores” mindset
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Source Tagging “Away from Store” Tagging
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From a narrow source tagging to a “store does not do the tagging” mindset
Apply Tag in Store via Third Party (USA Discount Retailer) Apply Tag on Top 200 High Theft Item at Retailer DC (USA Drug Retailer) Apply Tag to High Theft Cosmetics at Retailers DC (UK Drug Retailer) Apply Hard Tag to High Theft items at Third Party Pack Centre (UK Drinks Brand)
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Take actions and make changes to the EAS program to amplify the risk to the Opportunist thief.
Security Claims on protected products The store wide marketing of risk – including public view monitors
Move more of the tagging application upstream and away from the store. Think differently:
Engage the buyers Adopt “take tagging away from the stores” mindset
Take Control – declare a five year vision for EAS and develop journey plan to that vision.
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1. Develop a clear five year vision for EAS in your organization 2. Declare an immediate (this year) plan of action to improve your current EAS ROI 3. Plan and implement well the pilots that can prove out the value of the change and innovation 4. Build a tracking system to get visibility to current performance metrics, to celebrate the impact of change and to hold gains. 5. Invest in the capacity and capability to lead the change and deliver the vision. Appoint an EAS Tzar!
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Identify stakeholders Listen to them Complete a SWOT Set a Vision Identify Year 1 of the 5 year journey
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Increase benefits $
Reach More Stores Protect More Products Right EAS Devices Right Gate Location Right Marketing of Threat Right Maintenance Additional EAS gate use cases
Lower Costs
Lower Store Tagging labour Lower cost of upstream tagging Lower cost of operations
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Innovate and collect data:
Impact on “new to” tagging items… Impact on placement of new EAS gates in self- checkout corral etc
Explore new use cases
Advertising People counting CCTV integration
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Purpose
Build confidence with management Highlight trends Inform priority setting Show exceptions / alerts Benchmark stores / categories
Key Metrics:
Items % of targeted items protected % upstream Vs in-store Gate activations Activity by gate / by time Alerts
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Be the single point of contact for EAS Engage all stakeholders
Buyers Vendors Supply Chain
Own 5 year vision and current plan Design scorecard Develop communications
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EAS Tzar will:
Adjust the EAS programme Gates at SCO New Items New Formats Challenge Costs Etc Update dashboard / monitoring Keep programme and innovation journey on track
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EAS Tzar to shape the future vision Partner internally
Buyers, Supply Chain, Stores, etc Front End / Checkout Leaders
Engage the manufacturers
Improve EAS upstream tagging programme Reduce costs and improve efficiency
Proactively seek innovations with EAS vendor partners, especially on frictionless
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EAS Research Insights Retailer Response Questions
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Sophie Heaton Sophie.Heaton@tesco.com Tesco
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£ value loss to Tesco Reduced availability to the customer Corruption
record
Tesco invests £ into reducing shrink
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High risk products in store < 100% compliance
tagging
colleagues to tag
service
Moving Upstream
Proven that it reduces £ value shrink Proven that it improves availability Simplest execution for stores 100% product protection compliance
Targets opportunistic theft
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Identify high risk products
drivers of shrink
decisions
Working collaboratively
tracking successes End to end sense
benefit
mean ‘source’
to end sense do we tag
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Supplier evaluation to highlight best location for RF tag detection & deactivation RF tag and security messaging visible Well maintained EAS gates in the right location
Product Store
Clear security POS on shelf edge – deters opportunists Engaged store colleagues
Moving forward
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RF tagging at source Up to 50% shrink reduction OFD Promotions pre-tagging c.10% shrink reduction Recycling process established
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EVOLVE MONITOR
new solutions as the challenge
solutions
locations in all stores
possible?
using the data?
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Sharing data and information across the business Helping measure availability Auditing source tagging – are suppliers doing it properly? Single point
Connect to suppliers & buyers Educate about EAS Involvement in store design Define a clear plan to achieve EAS targets
EAS Research Insights Retailer Response Questions
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